July 07, 2015
For a lead-based affiliate program fraud prevention can be a daunting task that is critical to success. If done correctly from the beginning, it can save thousands of dollars in unnecessary commissions and fees. Here are three steps to ensuring your program is protected against fraudulent publishers.
Choose the right tracking platform.
One of the most important decisions for preventing fraud in a new affiliate program is choosing the correct tracking platform. There are a myriad of tracking platforms out there and they all have their benefits and drawbacks. Make sure that the tracking platform you’re considering is vigilant in vetting publishers and has a strong QA process in place for all traffic. Some of the larger tracking platforms place equal importance on fraud prevention as its merchants, which leads to expanded services to help control fraud such as real-time fraud detection and brand monitoring.
Set up program terms appropriately.
Once the tracking platform is in place, make sure that the program terms are not attractive to black-hat publishers. If you have a multiple-action program, such as paying on a lead and then a conversion to a paid sign-up, put the weight of the payout on the second conversion. In a pure lead program, keep the payout as close to the competition as possible without putting too much money out there. The bottom line is if you have a strong offer and the publisher drives quality traffic, they’ll understand that larger payouts come as private offers. A high, default-rate payout attracts publishers who may be more interested in taking advantage of the offer as opposed to converting high quality traffic.
Create a rock solid vetting process for new publishers.
All tracking platforms have their own publisher vetting process, with some being much more detailed than others. To ensure a trust-worthy publisher base, personally review all affiliate applications. It is a manual and time-consuming process, but is worth the effort in the end. To help speed up the process, put countries where fraud has a habit of originating from on auto-decline. The most common type of fraudulent publisher I am seeing lately are publishers with content sites that are related and look good for the program I am managing while having little actual traffic. If someone unseasoned was reviewing the application they would assuredly be accepted into the program. Once in the program they generally have a very high conversion ratio with bad leads. However, these sites do have a few tells that are easy to spot:
1) The banners for various programs in the tracking platform are listed on the site
2) They have low traffic scores when looking at Alexa and Google
Another type of suspect application I see are random publishers inserting extremely popular sites into the URL portion of the application. It is obvious that these people have nothing to do with the site, so that is an easy decline. But when it isn’t obvious, there are a few easy ways to gain information and put yourself ahead of the fraudsters:
1) Review the website – In many cases there will be information on the site that does not match up with the application or vice versa
2) Impose traffic restrictions – Create a minimum traffic requirement based on Alexa/Google/Anything else you want. Sites over a million in Alexa generally won’t generate any volume.
3) Make good use of a WHOIS tool – In many cases the domain information will be private, but when it’s not that information is helpful in determining the validity of an application
4) Reach Out – Any publisher that you are on the fence on in terms of acceptance or will be accepting you should reach out to in order to determine their marketing methods and begin a relationship. If it is a publisher you are unsure of and they don’t communicate back, well there is your answer. Invariably, some good publishers will be caught up in the net we’ve laid to prevent any fraud from entering the program.
This is a small price to pay for a clean program and in many cases they will reach out themselves allowing you to review everything again in a different light.
In the end, the most important way to keep your lead program fraud-free is to build long-lasting mutually-beneficial relationships with your publishers.
If you’re interested in learning how Schaaf-PartnerCentric builds highly valued lead programs, please request a consultation.